Posco and JSW Steel Form 50:50 JV for Odisha Plant by 2031, Targeting High-Value Steel Production
Posco announced Monday a strategic joint venture with JSW Steel to construct an integrated steel plant in India. This move is set to significantly expand Posco’s footprint in India’s rapidly growing steel market and bolster its global steel supply chain.
The joint venture agreement was formally signed in India by key executives, including Posco Group Chairman Chang In-hwa, Posco CEO Lee Hee-geun, JSW Steel CEO Jayant Acharya, and JSW Group CEO Sajjan Jindal. Under the terms, both Posco and JSW Steel will hold an equal 50 percent stake in the new entity.
Designed to produce 6 million tons of crude steel annually, the integrated facility will utilize a blast furnace-based production system, focusing on high-value-added steel products. This state-of-the-art plant will encompass the entire production spectrum, from ironmaking and steelmaking through to hot rolling, cold rolling, and galvanizing processes.
Strategically located in Odisha, the plant benefits from its proximity to vital iron ore mines and excellent access to logistics, power, and essential infrastructure. The ambitious construction project is scheduled for completion by 2031.
This partnership will leverage Posco’s advanced low-carbon production technologies and smart factory innovations alongside JSW Steel’s robust renewable energy infrastructure. The goal is to power a significant portion of the facility with green energy, establishing a pioneering low-carbon production system that aligns perfectly with India’s Green Steel Taxonomy, which was introduced in 2024.
The timing of Posco’s joint venture agreement coincides with strengthening economic ties between Korea and India, highlighted by President Lee Jae Myung’s state visit – the first by a South Korean president in eight years. Posco Group Chairman Chang In-hwa, among approximately 250 business leaders, was expected to participate in discussions aimed at fostering expanded economic cooperation between the two nations.
This long-anticipated India project marks a significant step forward for the steelmaker, aligning with Chairman Chang’s “complete localization strategy.” Following four previous unsuccessful attempts since 2004, often due to challenges in securing partners and suitable project sites, Posco successfully established its presence through strategic downstream investments and by cultivating stronger relationships with the JSW Group.
Posco reports that India’s steel market is experiencing robust annual growth exceeding 10 percent. This surge is fueled by strong economic expansion, rapid urbanization, and significant manufacturing sector growth, leading to increased demand for high-value-added steel in key industries like automotive and home appliances.
Globally, Posco is strategically countering protectionism through a series of localized investments. This includes the major India project, plans for a steel plant in Louisiana, and a collaboration with Cleveland-Cliffs aimed at strengthening its U.S. steel supply chain.
Domestically, Posco continues to drive innovation by advancing high-value steel products, implementing smart factory technologies, and pioneering hydrogen-based steelmaking. Profits generated from its global operations are being strategically reinvested into domestic decarbonization initiatives, underscoring its commitment to sustainable production.
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